Market Overview for Cottonwood Shores

There are 4 active listings in Cottonwood Shores with a median list price of $327K and a median sold price of $305K.

Homes average 181 days on market.

Over the past 30 days, 2 homes have sold, with 17 sales in the past 12 months.

The average price per square foot is $236.

About Cottonwood Shores

Cottonwood Shores is an incorporated city of 1,403 residents (2020 census) on the south bank of the Colorado River in southwestern Burnet County, approximately 50 miles west of downtown Austin. The city covers approximately 1.07 square miles of land at an elevation of 833 feet and sits at the outlet of Lake LBJ where Wirtz Dam releases water into Lake Marble Falls — earning the city its motto, "The City on Two Lakes."

Cottonwood Shores was incorporated around 1987 as a mayor-council municipality. The city first appeared on county maps in the early 1970s as a residential development along the Lake LBJ and Lake Marble Falls shorelines. The population has grown steadily from 548 in 1990 to 877 in 2000, 1,123 in 2010, and 1,403 in 2020, with recent estimates near 1,860.

Lake LBJ is a constant-level Highland Lakes reservoir covering 6,449 acres, created in 1951 by Wirtz Dam on the Colorado River. Because it is a pass-through lake, water levels remain stable year-round, unlike the storage reservoirs of Lake Buchanan and Lake Travis. Lake Marble Falls, immediately downstream, is a narrow riverine lake approximately 5.75 miles long that also maintains a relatively constant level. The city operates boat ramps on both lakes, making waterfront access a defining feature of daily life.

The housing market in Cottonwood Shores is oriented around lake proximity. Properties range from lakefront homes on Lake LBJ and Lake Marble Falls to interior lots within walking distance of the water. Marble Falls, about four miles southwest, provides retail, groceries, healthcare, and the area's commercial corridor.

Living in Cottonwood Shores

Cottonwood Shores is a small lake city with its own police department, water and sewer utility, and parks. The city hall sits on Cottonwood Drive. Despite its municipal services, the city has no bank, grocery store, gas station, or post office within its limits — residents rely on nearby Marble Falls for commercial services.

Schools are operated by Marble Falls ISD, the same district that serves Marble Falls, Granite Shoals, Meadowlakes, Spicewood, and Highland Haven. No school campuses are physically located within Cottonwood Shores; students attend MFISD campuses in Marble Falls. The district enrolls approximately 4,066 students across seven campuses.

The commute to Austin is approximately 50 miles via Highway 71, typically 60 to 80 minutes depending on traffic through Bee Cave. Many residents are retirees, remote workers, or employed in the Marble Falls commercial corridor. Lake recreation drives daily life: the city operates boat ramps on both Lake LBJ and Lake Marble Falls, and the Lake LBJ Yacht Club and Marina on South Wirtz Dam Road offers boat and jet ski rentals. Hill Country Community Theatre, a nonprofit founded in 1985, produces family-oriented shows and draws regional audiences.